政大機構典藏-National Chengchi University Institutional Repository(NCCUR):Item 140.119/36696

政大機構典藏-National Chengchi University Institutional Repository(NCCUR):Item 140.119/36696

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政大典藏 > College of Commerce > Department of Finance > Theses > Item 140.119/36696

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/36696

Title:	Strategic Trade Policy and Exchange Rate Subsidies: A Study of American Auto Markets
Authors:	林季陽 Lin,Chi-Yang
Contributors:	張元晨溫偉任 Chang,Yuanchen Wen,Wei-Jen 林季陽 Lin,Chi-Yang
Keywords:	外匯干預汽車業匯率預期 peso problem
Date:	2005
Issue Date:	2009-09-18 19:18:47 (UTC+8)
Abstract:	Can intervention by the Bank of Japan on the yen/dollar rates be used as a strategic policy to promote Japanese exports to the U.S. markets？ We develop theoretical models based on strategic trade policy literature to explain possible impacts on U.S. automobiles. During the last decade, the changes of yen/dollar rates have coincided with dramatic market-share gains by Japanese automakers in the U.S. market. In the meantime, intervention by the Bank of Japan on the yen/dollar market has reached a record high. Our models assume interventions have two channels to influence U.S./Japan trade. First, we hypothesize that official currency manipulation by the Bank of Japan was implemented as a means to subsidize Japanese. The second channel resulted from the relationship between the expectation of an unavoidable foreign exchange rate appreciation and automobile purchase behavior of U.S. consumers. We assembles the famous “peso problem” in international finance. By preventing the prompt appreciation of JPY using intervention strategy, we argue that intervention by the Bank of Japan create a notion of unavoidable appreciation of JPY rate. This prompts U.S. consumers to purchase cars earlier. We explore the effects of intervention of Bank of Japan on the changes of sale volume and market shares of U.S. and Japan automakers and the results show that the sale volume and market share of American automakers decrease while these of Japanese automakers increase. Empirical results also indicate that U.S. consumers tend to purchase more Japanese automobiles when the Yen’s appreciation is withheld temporary level they have expected. After comparisons, we conclude that interventions by the Bank of Japan affect American automakers through cost disadvantage and Japanese automakers through another channel. Results also imply that the effects of intervention on Japan/U.S. trade lie more through the channel of cost subsidy.
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Description:	碩士國立政治大學財務管理研究所 92357029 94
Source URI:	http://thesis.lib.nccu.edu.tw/record/#G0923570291
Data Type:	thesis
Appears in Collections:	[Department of Finance] Theses

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